Saturday, 18 May 2013

Re: [] About Local Body Tax


Dear Mr. Jose,

Today government is cutting down all sort of subsidies and very soon subsidies will become part of history of India. At the same the infrastructure development is turned to be BOT model. Now huge amount tax that is being collected from the citizens is mainly going to the government expenditure including the all sort of luxuries enjoyed by the politicians and the bureaucracy. Most of the popular schemes made for the poor are funded by foreign monitory agencies.

So please do not say that the taxes are being collected for the poor and the downtrodden people of this country.

However I do not want to suggest anyone not to pay the tax, because it has legal implications. But definitely it is not meant to bring any social justice as it is interpreted.

From: JOSE A A <>
To: "" <>
Sent: Friday, May 17, 2013 2:36 PM
Subject: Re: [] About Local Body Tax

Please do not mislead the readers by making out a case that the traders as concerned about the increase in the cost to the consumers. Hardly any trader is, as such, bothered about the consumers/customers and the so called agitation is aimed at making more and more profits by them by burdening the customers. All the taxes and levies indicated in the communication is imperative for raising revenue by the Authorities/Local Bodies concerned to be utilised for the welfare of the citizens.

Traders and businessmen must learn to be proud partners for the development of the poor and downtrodden people of the country rather than making unnecessary hue and cry and justifying the same by erroneously showing them as saviours of the customers. There is no iota of of truth in such arugments.

Augustine Jose

From: Yamini Nair
Sent: Friday, 10 May 2013 12:17 PM
Subject: [] About Local Body Tax

LBT is a tax which implemented in the manner it is implemented in other parts of Maharashtra, it will become a menace for traders, retailers resulting into high costs for consumers. Like most policies of the Government, this Act is designed to slowly but surely kill small business.

What is LBT?

LBT (Local Body Tax) is a replacement of Octroi, wherein each trader who has got an annual turnover more than Rs. 3,00,000/- will have to register with BMC. Also incase your sales are less than Rs.3,00,000/- per Year but you purchase goods more than Rs.5,000/- then you will have to register.

Without registration with LBT you will not be allowed to do business in City Limits, like in our case within Mumbai.

Like VAT you will have to give a declaration on your Invoice and also pay tax before 20th of a month.

The Implications of LBT

The business in Maharashtra is slowly going to other states and with high rates of LBT it will go out at a much higher pace.

The LBT Officers can check any vehicle at any point in time, they can inspect your premises, they can verify your records for past 5 years. They can demand LBT amount at the same time. Only after paying the sum you can file an appeal. They can attach your properties.

The grounds for Opposition

People will wonder that it is similar to VAT and most things are applicable under VAT Also, then what's the difference?

Exactly that is the point raised by traders if it is similar then why have two different mechanisms. Let government come out with a way to reduce paperwork and burden on traders.

The current laws under which traders are supposed to maintain records.

Value Added Tax
Central Sales Tax
Customs Duty
Service Tax
Professional Tax
Income Tax
Entertainment Tax
Shop Establishment Act
Different Licences to Stock Goods like PVC, Plastic etc.

One can understand how difficult it is to manage documents/records under so many Acts/Taxes and the cost of doing business is growing indefinitely. As can be seen it will kill small business.

At the time of introduction of VAT in 2005 government had promised that Octroi would be removed and there will not be any additional tax burden in lieu of the same and now government is going back.
Also this is going to nothing else but increase corruption in the system in names of Law Compliance.

Government is aware about it but for them corruption is nothing else but a source of revenue for the ministers.

Today Government applied Section 144 in Lohar Chawl, under which not more than 5 people can gather. They are treating traders who provide maximum revenue to Mumbai BMC and Maharashtra Government as thugs and street side goondas. They want to deprive traders their basic rights to protest.

Recent Activity:
KERALITES - A moderated eGroup exclusively for Keralites...
To subscribe send a mail to
Send your posts to
Send your suggestions to

To unsubscribe send a mail to



No comments:

Post a Comment